Rajat Gupta, former Goldman Sachs director and ex-global head of McKinsey & Co, surrendered before the federal authorities Wednesday in connection to a hedge fund scam. He has been arrested and is in FBI custody.
Gupta, one of the most prominent Indian-Americans in the financial sector of the country, is being named the co-conspirator in the hedge fund scam and faces criminal charges related to his Sri Lankan friend Raj Rajaratnam, the alleged kingpin of the insider trading scam.
The former director of Goldman Sachs Group came under scrutiny after Rajaratnam, founder of the Galleon Group hedge fund, was charged for insider trading. Rajaratnam was sentenced to 11 years imprisonment by a judge on Oct. 13.
Gupta is accused of passing confidential information about Goldman Sachs and Procter & Gamble to Rajaratnam.